Revenue for the first quarter of fiscal 2017 decreased 3.3% (3.1%
constant currency) to $143.4 million compared to the prior year's first
quarter of $148.3 million. The revenue decrease is partially
attributable to fewer business opportunities in the financial services
and energy sectors. In addition, approximately 0.9% of the
quarter-over-quarter revenue decrease is attributable to the shift of
the Memorial Day holiday to the first quarter of fiscal 2017 (Memorial
Day calendar 2015 was in the fourth quarter of fiscal 2015). On a
sequential basis, first quarter revenue decreased 6.0% (5.9% constant
currency) compared to $152.5 million in the fourth quarter of fiscal
2016. Approximately 1.8% of the sequential quarter revenue decrease is
attributable to the Memorial Day and July Fourth holidays. Constant
currency quarter-over-quarter is computed using the comparable first
quarter fiscal 2016 conversion rates and the sequential quarter is
computed using the comparable fourth quarter fiscal 2016 conversion
rates for revenue generated internationally.

Revenue in the U.S. decreased 4.5% quarter-over-quarter and 7.0%
sequentially. The Memorial Day holiday had an unfavorable impact on U.S.
revenue of 1.1% on a quarter-over-quarter basis; on a sequential basis,
the Memorial Day and July Fourth holidays had an unfavorable impact on
revenue of 2.1%. International revenue improved 1.9%
quarter-over-quarter (3.1% constant currency) but decreased 1.4%
sequentially (0.9% constant currency).

The Company's net income declined in the first quarter of fiscal 2017 to
$5.6 million, or $0.15 per diluted share, compared to $7.1 million, or
$0.19 per diluted share, in the prior year's first quarter.

"Our strong balance sheet allows us to return capital to our
shareholders as evidenced by the $9.3 million we returned in the first
quarter from our dividend and stock repurchase programs," said Tony
Cherbak, President and Chief Executive Officer ("CEO") of RGP. "We are
continuing to focus on business development with new and existing
clients in an ongoing effort to stimulate revenue growth."

In a separate press release issued today, the Company announced that Mr.
Cherbak will resign as the Company's President and CEO effective Friday,
October 7, 2016 due to health considerations. Kate W. Duchene, the
Company's Chief Legal Officer, Executive Vice President, Human Resources
and Secretary, will serve as interim CEO while the Company's Board of
Directors oversees a search for a permanent CEO.

Gross margin was 38.0% in the first quarter of fiscal 2017, compared to
38.7% in the prior year quarter. Gross margin in the first quarter of
2017 decreased more than expected primarily due to an unfavorable change
in the bill rate/pay rate ratio. Sequentially, gross margin decreased
190 basis points from 39.9% in the fourth quarter of fiscal 2016, due
primarily to two paid holidays in the U.S. during the first quarter and
an unfavorable change in the bill rate/pay rate ratio.

Selling, general and administrative expenses for the first quarter of
fiscal 2017 were $43.6 million (30.4% of revenue) compared to $44.0
million (29.7% of revenue) in the prior year's first quarter and $44.4
million (29.1% of revenue) in the fourth quarter of fiscal 2016. The
prior year quarter includes $900,000 in additional stock compensation
expense for acceleration of vesting of certain options; the remaining
quarter-over-quarter increase is related to compensation and related
benefit costs. The sequential decrease is primarily related to reduced
marketing spend.

Cash used in operations and Adjusted EBITDA were $7.1 million and $12.2
million (8.5% of revenue), respectively, for the first quarter of fiscal
2017 compared to cash used in operations and Adjusted EBITDA of $4.6
million and $15.7 million (10.6% of revenue), respectively, for the
first quarter of fiscal 2016. Cash flows in the first quarter of the
fiscal year are typically used in operations as the Company pays its
year-end incentive based compensation in that quarter.

In the first quarter of fiscal 2017, the Company repurchased
approximately 375,000 shares of its common stock for $5.7 million and
paid a quarterly dividend totaling $3.6 million ($0.10 per diluted
share) to shareholders. Currently, the Company has a total of $132.9
million available for share purchases under its existing repurchase
program. As of August 27, 2016, the Company's cash, cash equivalents and
short-term investments were $102.9 million compared to $116.0 million at
fiscal year-end May 28, 2016.

RGP was founded in 1996 within a Big Four accounting firm. Today, we are
a publicly traded company with over 3,300 professionals, annually
serving over 1,800 clients around the world from 68 practice offices.

Headquartered in Irvine, California, RGP has served 86 of the Fortune
100 companies.

The Company is listed on the NASDAQ Global Select Market, the exchange's
highest tier by listing standards. More information about RGP is
available at http://www.rgp.com.
(RECN-F)

RGP will hold a conference call for interested analysts and investors at
5:00 p.m., ET today, October 5, 2016. This conference call will be
available for listening via a webcast on the Company's website: http://www.rgp.com.
An audio replay of the conference call will be available through October
12, 2016 at 855-859-2056. The conference ID number for the replay is
75548888. The call will also be archived on the RGP website for 30 days.

Certain statements in this press release are "forward-looking
statements" within the meaning of Section 27A of the Securities Act of
1933 and Section 21E of the Securities Exchange Act of 1934. Such
forward-looking statements may be identified by words such as
"anticipates," "believes," "can," "continue," "could," "estimates,"
"expects," "intends," "may," "plans," "potential," "predicts," "remain,"
"should" or "will" or the negative of these terms or other comparable
terminology. In this press release, such statements include the
Company's continued focus on business development to stimulate revenue
growth. Such statements and all phases of the Company's operations are
subject to known and unknown risks, uncertainties and other factors that
could cause our actual results, levels of activity, performance or
achievements and those of our industry to differ materially from those
expressed or implied by these forward-looking statements. Risks and
uncertainties include seasonality, overall economic conditions and other
factors and uncertainties as are identified in our most recent Quarterly
Report on Form 10-Q and our other public filings made with the
Securities and Exchange Commission (File No. 0-32113). Additional risks
and uncertainties not presently known to us or that we currently deem
immaterial may also affect our business or operating results. Readers
are cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the date hereof. The Company does not
intend, and undertakes no obligation, to update the forward-looking
statements in this press release to reflect events or circumstances
after the date hereof or to reflect the occurrence of unanticipated
events, unless required by law to do so.

RESOURCES CONNECTION, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Amounts in thousands, except per share amounts)

Three Months Ended

August 27,

August 29,

2016

2015

(Unaudited)

Revenue

$

143,389

$

148,340

Direct cost of services

88,862

90,877

Gross margin

54,527

57,463

Selling, general and administrative expenses (1)

43,614

43,957

Operating income before amortization

and depreciation (1)

10,913

13,506

Amortization of intangible assets

-

30

Depreciation expense

794

858

Operating income (1)

10,119

12,618

Interest income

(70

)

(32

)

Income before provision for income taxes (1)

10,189

12,650

Provision for income taxes (2)

4,551

5,517

Net income (1), (2)

$

5,638

$

7,133

Net income per common share:

Basic (1), (2)

$

0.16

$

0.19

Diluted (1), (2)

$

0.15

$

0.19

Weighted average common shares outstanding:

Basic

36,269

37,295

Diluted

36,817

37,847

Cash dividends declared per common share

$

0.11

$

0.10

EXPLANATORY NOTES

(1)

Selling, general and administrative expenses include non-cash
compensation expense for employee stock option grants, restricted
share grants and employee stock purchases of $1.3 million and $2.2
million for the three months ended August 27, 2016 and August 29,
2015, respectively. The expense for the three months ended August
29, 2015 includes approximately $900,000, or $0.01 per share, for
the Board of Director's approval of accelerated vesting of 127,500
stock options related to Don Murray's transition from Executive
Chairman to non-employee Chairman of the Board.

(2)

The Company's effective tax rate was approximately 45% and
approximately 44% for the three months ended August 27, 2016 and
August 29, 2015, respectively. For all periods presented, the
Company is unable to benefit from, or has limitations on the benefit
of, tax losses in certain foreign jurisdictions. To a lesser extent,
the accounting treatment under GAAP for the cost associated with
incentive stock options and shares purchased through the Employee
Stock Purchase Plan has caused volatility in the Company's effective
tax rate.

RESOURCES CONNECTION, INC.

RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA

(Dollars in thousands)

Three Months Ended

August 27,

August 29,

2016

2015

(Unaudited)

Net income

$

5,638

$

7,133

Adjustments:

Amortization of intangible assets

-

30

Depreciation expense

794

858

Interest income

(70

)

(32

)

Provision for income taxes

4,551

5,517

EBITDA

10,913

13,506

Stock-based compensation expense

1,295

2,155

Adjusted EBITDA

$

12,208

$

15,661

Revenue

$

143,389

$

148,340

Adjusted EBITDA Margin

8.5

%

10.6

%

EXPLANATORY NOTE

The Company utilizes certain financial measures and key performance
indicators that are not defined by, or calculated in accordance with,
GAAP to assess our financial and operating performance. A non-GAAP
financial measure is defined as a numerical measure of a company's
financial performance that (i) excludes amounts, or is subject to
adjustments that have the effect of excluding amounts, that are included
in the comparable measure calculated and presented in accordance with
GAAP in the statement of operations; or (ii) includes amounts, or is
subject to adjustments that have the effect of including amounts, that
are excluded from the comparable measure so calculated and presented.

EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin are non-GAAP
financial measures. EBITDA is calculated as net income before
amortization of intangible assets, depreciation expense, interest income
and income taxes. Adjusted EBITDA is calculated as EBITDA plus
stock-based compensation expense. Adjusted EBITDA Margin is calculated
by dividing Adjusted EBITDA by revenue. We believe that EBITDA, Adjusted
EBITDA and Adjusted EBITDA Margin provide useful measures to our
investors because they are financial measures used by management to
assess the core performance of our Company. EBITDA, Adjusted EBITDA and
Adjusted EBITDA Margin are not measurements of financial performance or
liquidity under GAAP and should not be considered in isolation or
construed as substitutes for net income or other cash flow data prepared
in accordance with GAAP for purposes of analyzing our profitability or
liquidity. These measures should be considered in addition to, and not
as a substitute to, net income, earnings per share, cash flows or other
measures of financial performance prepared in accordance with GAAP.

RESOURCES CONNECTION, INC.

CONSTANT CURRENCY REVENUE COMPARISON

(Dollars in thousands)

(Unaudited)

Revenue for the Three Months Ended

August 27,

2016

GAAP

August 29,

2015

GAAP

May 28,

2016

GAAP

% Decrease

August 27, 2016

vs.

August 29, 2015 GAAP

% Decrease

August 27, 2016

vs.

August 29, 2015

Constant Currency (1)

% Decrease

August 27, 2016

vs.

May 28, 2016 GAAP

% Decrease

August 27, 2016

vs.

May 28, 2016 Constant Currency (2)

$

143,389

$

148,340

$

152,515

-3.3

%

-3.1

%

-6.0

%

-5.9

%

(1) The percentage change in revenue on a constant currency basis is
calculated using the average foreign exchange rates for the first
quarter of fiscal 2016 and applying those rates to
foreign-denominated revenue in the first quarter of fiscal 2017.

(2) The percentage change in revenue on a constant currency basis is
calculated using the average foreign exchange rates for the fourth
quarter of fiscal 2016 and applying those rates to
foreign-denominated revenue in the first quarter of fiscal 2017.

EXPLANATORY NOTE

In order to provide a more comprehensive view of trends in our business,
this table shows revenue data on an as reported basis (GAAP) for the
respective periods and relative change in the same periods from the
impact on revenue of exchange rate fluctuations between the United
States dollar and currencies in countries in which the Company operates.